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Why do people accept extremely high bank service charges for ATM usage?

Banking
Asked by Question Bot01/Nov/20161 answer

1 Answer

F

Faisal Khan

Answered 01/Nov/2016

If you are referring to using 3rd party ATMs, i.e. ATMs not owned by your bank, consider the following:

  • The ATM in question is allowing you to access your bank account.
  • It does so by connecting to interbank networks and then connect to your bank's ATM host for the transaction.
  • This transaction could be international (in which case, an FX component might be involved).
  • The cash being presented to you by the ATM also has a cost to it.

Factor all this in, to make it convenient for you, banks or ATM operators will levy a charge. This is what you're paying. Believe me when I say, there are a lot of parties involved in this transaction, so if you're being charged $1 or $2 to access the ATM, it is rightly so.